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AUD/USD holds above 0.7000 during the Asian session on Wednesday, though it remains close to a nearly two-month low set the previous day. Fresh US strikes on Iran temper hopes for a peace deal and benefit the safe-haven US Dollar. Furthermore, inflationary concerns continue to fuel hawkish Fed expectations, lending additional support to the buck ahead of the US CPI report. Adding to this, reduced bets on an RBA rate hike in June cap the currency pair.
USD/JPY consolidates just below mid-160.00s, or its highest level since late April, as economic concerns stemming from the Middle East conflict continue to undermine the Japanese Yen (JPY). Furthermore, a fresh wave of US strikes on Iran benefits the safe-haven US Dollar and acts as a tailwind for the currency pair, countering Japan's hotter-than-expected PPI report. However, intervention fears cap the upside as traders seem hesitant ahead of the US consumer inflation figures later this Wednesday.
Gold drops to a fresh low since March 23, around the $4,200 mark during the Asian session on Wednesday, as fresh US strikes on Iran fuel inflationary concerns and bolster bets for more hawkish central banks, including the US Fed. Meanwhile, US Dollar bulls are turning cautious ahead of the US CPI report, which could limit bullion losses. However, the recent breakdown below the 200-day SMA suggests that the path of least resistance for the XAU/USD is to the downside.
Bitcoin dropped near $61,000 on Tuesday, with the latest sell-off pushing long-term market indicators toward levels historically associated with bear-market bottoms, according to a report by K33 Research.
The market came into Tuesday trying to sell investors the comforting ”Turnaround Tuesday” idea that Friday’s AI fracture was just another pothole on the road higher. By the close, that story had lost its bid. Monday’s dead cat bounce had done what dead cat bounces always do.
More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.
